Hewlett-Packard (HPQ, $50.82, up $0.78)
Buy to OPEN December 55 calls (HPQLK, $0.24, up $0.08)
Action: Use limit orders of 25 cents but don’t stress if it doesn’t get filled there. You could also use market orders of 25 cents and you could go as high as 30 cents. The point is there is a lot of action and it won’t be hard to get filled.
Please realize this is an all-or-nothing trade. If HP runs higher the position will do well. If HP misses earnings these calls could expire worthless. To buy 10 contracts it will cost you about $250 and 20 contracts will cost you about $500.
We will be back in the morning with the updates.